Monday, October 02, 2006

Calls of Note Part 2

- FBR is reiterating their Outperform rating and $22 price target on TeleTech Holdings (NASDAQ:TTEC) and adding the company to the FBR Top Picks List as their focus has shifted to those enterprise services stocks posed to benefit from globalization trends. TTEC continues to secure more business from both new and existing clients, due to the widespread adoption of outsourcing due to domain expertise and efficiencies, having added several new clients during the quarter and announced expansion with others. Firm also continues to believe opportunity exists with the stock as consensus estimates are 30% below guidance due to the uncertainty around Newgen. At 7.8x CY07 EBITDA versus the peer group at 8x, they continue to believe the shares represent one of the best risk/ rewards in firm's coverage universe and remain buyers of the shares.

Firm believes TTEC is positioned for a strong CY07 as the recent client wins in healthcare, media, and communications continue to show the company's ability to seize the organic growth trends in the outsourcing market. TTEC's strong product offering is also proving advantageous in securing more business from existing clients, as the company continues to see relationships expand within its customer base.

Notablecalls: Expect to see some buy interest following FBR's comments.